Next Generation In-Vehicle Networking Market By Technology (Automotive Ethernet, CAN (Controller Area Network), FlexRay, LIN (Local Interconnect Network), MOST (Media-Oriented Systems Transport)); By Component (Switches, Gateways, Microcontrollers, Cables and Connectors); By Application (Infotainment, Advanced Driver-Assistance Systems (ADAS), Powertrain Control, Telematics); By Vehicle Type (Passenger Vehicles, Commercial Vehicles, Electric Vehicles); By Geography, Segment revenue estimation, Forecast, 2024–2032.

The next-generation in-vehicle networking market was valued at USD 2.5 billion in 2023 and is expected to reach USD 7.8 billion by 2030, with a compound annual growth rate of 17.8% during the forecast period 2024–2030. This growth is attributed to the growing use of self-driving cars, the augmented need for advanced driving aids, and technological innovations in automotive connectivity.

 

Next-generation in-vehicle Networking (IVN) involves the scale and hierarchy of connectivity between vehicle onboard systems, including infotainment, telematics, ADAS, and powertrain control. The development of IVN is key to attaining smart, connected, and cooperative automobiles that are fast becoming the foundation of most transportation systems.

 

Market Drivers

Rising Adoption of Autonomous and Connected Vehicles: The adoption of self-driving cars has led to a huge surge in demand for IVN that is complex and thus requires enhanced solutions. New-age cars require real-time information transfer between sensors, cameras, electronic equipment, and the like, which the next-gen IVN provides. Example: Electric cars Tesla claims to have a highly reliable vehicle network to handle autopilot and over-the-air (OTA) in self-driven cars. In 2023, the growth of connected and autonomous vehicles increased by 15% globally, increasing the need for complex IVN structures.

 

Increased Focus on Infotainment and Connectivity: The desire of the consumer to have better infotainment systems, including the use of applications like real-time navigation, voice command, and internet integration, has been the reason for the integration of next-generation IVN. Example: In 2022, a Japanese carmaker launched a new car with a 5 G-supported infotainment system backed by a next-generation vehicle-to-everything communication system.

 

Advancements in Communication Protocols: Next-generation IVN has been made possible due to new high-speed communication protocols such as automotive Ethernet, CAN FD, and FlexRay with better data management inside vehicles. Example: In 2023, one IVN solution provider from the United States introduced an efficient new gigabit Ethernet solution specifically for electric and self-driving cars.

 

Market Opportunities

Integration of 5G Technology: 5G network deployment represents a major opportunity for IVN to improve data transfer rates and facilitate vehicle connectivity. For example, in 2023, a South Korean automaker decided to cooperate with a telecom giant to improve vehicle connectivity through 5G-based IVN systems.

 

Demand for Electric Vehicles (EVs): With the increasing uptake of EVs, there is a business opportunity for IVN providers to design highly specific solutions to support electric powertrain and battery management systems. In 2023, there was a global market of 10 million EVs, an improvement of 20% from the previous year.

 

Emergence of Software-Defined Vehicles (SDVs): The shift toward SDVs, where software update options control several functionalities, requires a strong IVN system capable of OTA updates and effective software integration. Example: In 2022, a European luxury car maker developed an SDV that is underpinned by a scalable IVN platform to enable real-time software updates.

 

Market Restraints

High Costs of Deployment: The implementation of these next-generation IVN models is expensive, and this often poses a problem for many automotive makers, who fear that they will not be able to recover the cost of implementing the IVN solutions.

 

Challenges that Exist with Retrofitting Existing cars: Integrating sophisticated IVN systems in new vehicle models can be technically demanding, making it difficult to implement in the aftermarket segment.

 

Market Segmentation

By Technology:

• Automotive Ethernet

• CAN (Controller Area Network)

• FlexRay

• LIN (Local Interconnect Network)

• MOST (Media-Oriented Systems Transport)

 

By Component:

• Switches

• Gateways

• Microcontrollers

• Cables and Connectors

 

By Application:

• Infotainment

• Advanced Driver-Assistance Systems (ADAS)

• Powertrain Control

• Telematics

 

By Vehicle Type:

• Passenger Vehicles

• Commercial Vehicles

• Electric Vehicles

 

By Region:

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

 

Segment Analysis

Leading Technology: Automotive Ethernet

Automotive Ethernet held 35% of the market revenue in 2023, which is attributed to its high bandwidth capability and its aptness for the autonomous and connected car sectors. Example: A couple of years in the year 2023, an American EV maker adopted the Ethernet-based IVN in its latest model, which included direct communication between cameras, radars, and LIDAR systems.

 

Leading Application: ADAS

ADAS held the largest revenue share of 40% in 2023 due to rising regulatory standards for embedding safety features and customer expectations for enhanced vehicle abilities. Example: One of the European luxury car makers introduced an IVN system specific to ADAS in its 2023 model range to improve driver safety.

 

Regional Analysis

North America remains the largest market, with a market share of 40% in 2023, because it is home to some of the world’s leading automotive OEMs and early adopters of new technologies. With 75% of North American revenue, the U.S. remains ahead in developing autonomous and electric vehicles or IVN. Example: In 2023, one of the most popular Silicon Valley startups cooperated with one of the largest global automaker companies to create advanced IVN systems for electric trucks.

 

Europe is expected to contribute 30% of the market revenues throughout the forecast horizon because of mandatory safety requirements and a focused approach to connected and autonomous vehicle technologies. For example, a German car manufacturer introduced an electric SUV in 2023 that will allow for the integration of IVN for ADAS within an infotainment system.

 

Asia-Pacific is the fastest-evolving region, enjoying urbanization, the growth of vehicle ownership, and investment in the infrastructure related to EVs. For example, in 2023, a Chinese concern launched an IVN solution for cheap EVs, which attracted the interest of emerging markets.

 

Key Players

• Bosch

• NXP Semiconductors

• Continental AG

• Texas Instruments

• Infineon Technologies

• Broadcom Inc.

• Qualcomm Technologies

• Renesas Electronics Corporation

• Vector Informatik

• Molex

 

Future Outlook

Due to the growing incorporation of intricate automotive connectivity technologies, demand for autonomous vehicles, and the need for effective communication within vehicles, the Next-Generation In-Vehicle Networking (IVN) market is on the verge of experiencing considerable growth. Consumers in different emerging market regions, such as Asia-Pacific and Latin America, will be the key drivers of growth. This will be supported by increased urbanization, automotive production growth, and awareness of connected vehicle technologies.

 

Those companies paying attention to cost efficiency, modularity, and compatibility with 5G and AI are expected to benefit more. Next-generation IVN will be the basic infrastructure of various modern vehicles, to be standardized by 2030 for multifunctional communication applications.